NAICS 316990 Quarterly Industry Report
Other Leather and Allied Product Manufacturing
Comprehensive industry research for valuation professionals, business owners, buyers, and lenders
NAICS Code: 316990Sector: 31Updated: Q1 2026
About This Report
This Fair Market Value industry report for NAICS 316990 provides business owners, acquirers, and financial advisors with data-driven valuation insights for the leather goods manufacturing sector, drawing on data from the U.S. Census Bureau[4] County Business Patterns and SBA[7] lending records. Additional data is drawn from Bureau of Labor Statistics[8].. The report aggregates transaction multiples, financial benchmarks, and market trends specific to NAICS 316990 establishments, supporting buy-sell agreements, succession planning, SBA-financed acquisitions, and litigation support engagements.
Industry Definition & Overview
Other Leather and Allied Product Manufacturing (NAICS 316990) encompasses establishments primarily engaged in manufacturing leather goods not classified in other leather product manufacturing categories, including handbags and purses, personal leather goods such as wallets and key cases, luggage, saddlery and use products, and similar articles made from leather or leather substitutes including plastics and textiles. The industry serves both luxury and mass-market consumer segments through a diverse range of personal accessories and travel goods. According to the U.S. Census Bureau[4], domestic manufacturers include both artisanal workshops producing handcrafted leather goods and larger operations manufacturing travel bags, briefcases, and promotional products at scale.
Domestic production has shifted toward premium and luxury segments where craftsmanship, brand heritage, and made-in-USA positioning support higher price points, while mass-market handbags and luggage production has largely moved offshore. The growing emphasis on sustainable and ethical manufacturing practices has created opportunities for domestic producers using vegetable-tanned leathers, recycled materials, and transparent supply chains. Per Bureau of Labor Statistics[5] data, the workforce includes skilled leather workers, pattern makers, and stitchers whose craft knowledge commands premium wages relative to general manufacturing positions.
The SBA Office of Advocacy[6] notes that small and artisanal manufacturers represent the majority of domestic establishments, competing through direct-to-consumer e-commerce channels, craft marketplace platforms, and boutique retail partnerships. Western saddlery and equestrian equipment manufacturing maintains a stable domestic niche driven by custom fit requirements and the specialized knowledge needed for functional riding equipment.
What's Included in This Industry
- Valuation multiples benchmarked to leather goods and accessories manufacturers
- Revenue and EBITDA trends for handbag, luggage, and leather product operations
- SBA lending data and financing terms for NAICS 316990
- Comparable transaction data from recent leather goods manufacturer acquisitions
- Industry risk factors including import competition and material cost fluctuations
- Workforce composition and labor cost benchmarks for leather goods production
- Regional market analysis covering domestic leather goods manufacturing clusters
- Brand equity and intellectual property valuation considerations
- Growth projections tied to luxury goods, e-commerce, and sustainable manufacturing
- Owner compensation and discretionary earnings benchmarks
NAICS Classification Hierarchy
| Level | Description | Code |
|---|---|---|
| Subsector | Leather and Allied Product Manufacturing | 316 |
| Industry Group | Other Leather and Allied Product Manufacturing | 3169 |
| NAICS Industry | Other Leather and Allied Product Manufacturing | 31699 |
| National Industry | Other Leather and Allied Product Manufacturing | 316990 |
Related NAICS Codes
| Code | Description | Relationship |
|---|---|---|
| 316110 | Leather and Hide Tanning and Finishing | Leather and hide tanning operations supplying finished leather that serves as the primary raw material for handbag, luggage, and leather goods production |
| 316210 | Footwear Manufacturing | Footwear manufacturers sharing leather supply chains, production techniques, and retail distribution channels with leather goods producers |
| 315990 | Apparel Accessories and Other Apparel Manufacturing | Apparel accessories manufacturers producing belts, gloves, and other accessories that complement leather goods product lines in retail settings |
| 314910 | Textile Bag and Canvas Mills | Textile bag and canvas mills producing fabric bags and travel goods that compete with leather products in luggage and handbag markets |
| 424340 | Footwear Merchant Wholesalers | Footwear merchant wholesalers whose distribution networks extend to leather accessories and complementary product categories in retail accounts |
| 459510 | Used Merchandise Retailers | Used merchandise retailers and consignment shops creating secondary markets for premium leather goods and vintage leather accessories |
SBA Lending Summary
136
Total SBA Loans
$33.5M
Total Loan Volume
$246K
Average Loan Size
10 yrs
Average Loan Term
10.28%
Average Interest Rate
776
Jobs Supported
Source: SBA 7(a) Program Data, U.S. Small Business Administration — FY 2025[3]
Key Insight: Leather goods manufacturers seeking SBA financing typically qualify under the SBA size standards[9] for NAICS 316990, which set the threshold at 500 employees for small business classification. The SBA 7(a) loan program[10] provides up to $5 million for business acquisitions, leather working equipment, and working capital for raw material inventory. Most CDC/504 loan program[11] offers long-term fixed-rate financing for manufacturing facility improvements, cutting and stitching equipment installations, and production capacity expansion. Lenders evaluate brand recognition, customer channel diversification, and inventory management practices when underwriting transactions.
Top SBA Lenders
| # | Lender | Loans | Volume | Avg Loan |
|---|---|---|---|---|
| 1 | Northwest Bank | 24 | $9.5M | $396K |
| 2 | Northeast Bank | 32 | $6.6M | $205K |
| 3 | Gesa CU | 8 | $5.0M | $620K |
| 4 | Community National Bank | 16 | $4.1M | $256K |
| 5 | MISSINGMAINBANKID | 8 | $3.2M | $395K |
Frequently Asked Questions
Common questions about this industry.
What is the typical valuation multiple for a leather goods manufacturer?
Leather goods manufacturers typically trade at 3x to 7x EBITDA, with strong brand equity, direct-to-consumer channels, and luxury market positioning driving premium valuations. Artisanal producers with recognized brand names and loyal customer bases can exceed standard ranges. Per U.S. Census Bureau[4] data, intellectual property including trademarks, design registrations, and brand goodwill represents material intangible asset value in leather goods transactions.
What SBA loan options are available for acquiring a leather goods manufacturer?
The SBA 7(a) loan program[10] provides up to $5 million for business acquisitions and equipment purchases, while the CDC/504 program[11] finances facility improvements and production equipment. Lenders review brand strength, customer channel mix, leather inventory valuations, and seasonal revenue patterns during due diligence.
What equipment is needed for leather goods manufacturing?
Core equipment includes leather cutting dies and clicker presses, industrial stitching machines for leather, edge finishing and burnishing equipment, riveting and hardware attachment tools, and embossing machinery. Per SBA[7] lending data, computerized leather cutting systems represent a significant capital investment for larger operations, while artisanal producers may operate with primarily hand tools and bench-mounted equipment.
How does the luxury market segment affect leather goods valuations?
Luxury-positioned leather goods manufacturers benefit from premium pricing, strong brand loyalty, and margins substantially above mass-market alternatives. According to the U.S. Census Bureau[4], domestic luxury producers command higher valuations due to brand heritage, craft expertise, and customer willingness to pay premium prices for American-made quality that differentiates products from imported mass-market goods.
What are the main cost drivers for leather goods manufacturing?
Leather and material costs typically represent 30-50% of production costs depending on the quality level and product type, with skilled labor for cutting, stitching, and finishing representing the second major cost category. Hardware components including zippers, clasps, and metal fittings contribute additional material costs, while packaging and branding elements add to per-unit expenses for premium product lines.
What role does e-commerce play in leather goods manufacturing?
Direct-to-consumer e-commerce has transformed the industry by enabling small manufacturers to reach national and international markets without traditional wholesale distribution. Per U.S. Census Bureau[4] e-commerce data, online sales channels allow producers to capture full retail margins while building direct customer relationships, reducing dependence on department store and specialty retail accounts.
What growth opportunities exist for leather goods manufacturers?
Growth opportunities include expanding direct-to-consumer channels through branded e-commerce sites, developing sustainable product lines using vegetable-tanned and recycled leathers, custom and personalized products enabled by digital cutting technology, and Western and equestrian equipment serving the growing recreational riding market tracked by the USDA[12] agricultural census.
What workforce challenges do leather goods manufacturers face?
Key challenges include recruiting skilled leather workers capable of hand-stitching, edge finishing, and pattern cutting in an industry with limited domestic training programs. Artisanal operations depend on craft knowledge typically acquired through apprenticeship rather than formal education, creating succession planning concerns as experienced craftspeople retire from active production.
Sources & References
Government datasets and editorial sources used in this report.
- [1]U.S. Bureau of Labor Statistics, Quarterly Census of Employment and Wages bls.gov
- [2]U.S. Census Bureau, Economic Census census.gov
- [3]U.S. Small Business Administration, SBA 7(a) Loan Program Data data.sba.gov
- [4]U.S. Census Bureau census.gov
- [5]Bureau of Labor Statistics bls.gov
- [6]SBA Office of Advocacy advocacy.sba.gov
- [7]SBA sba.gov
- [8]Bureau of Labor Statistics bls.gov
- [9]SBA size standards sba.gov
- [10]SBA 7(a) loan program sba.gov
- [11]CDC/504 loan program sba.gov
- [12]USDA usda.gov
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